Temporal variation and conflict in integrating traditional and E-marketing activities

Master thesis

Temporal variation and conflict in integrating traditional and E-marketing

activities

Stan Heinen S1380362

Supervisor: Dr R. Loohuis

Second supervisor: Dr. K. Zalewska-Kurek Company: Kramp Varsseveld

Study: Business administration University of Twente

08-06-17

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Abstract

Marketing practices increasingly change by the use and potential of the internet . Therefore, companies have to adapt their marketing practices to these changes which often implies the integration of online driven and traditional ways of practicing marketing. This research focuses on these integration efforts, known as inter-functional coordination. The importance of inter-functional coordination lies in the fact that alignment between organizational functions is necessary for creating value for the customer. To obtain new insights on the integration of functions, this research focuses on developing a better understanding on the role of inter-functional conflicts in the integration of functions, and studying this from a temporal perspective.

Starting with a literature review resulted in a theoretical framework in which literature on inter- functional coordination is combined with literature on temporal structures. A temporal structure of a team is formed by the time perspective of that specific team. The time perspective is related to time aspects like an event or clock-based view on time, deadlines, booking hours, time pressure and the way of planning.

The current literature shows that there has already been a lot of research focusing on integration and inter-functional coordination. Nevertheless, the role of temporal structures in integrating

different functions is not yet studied. Therefore, this study focuses on the role of temporal structures in integration by analysing inter-functional conflicts caused by differences in temporal structures between teams. This is important because the temporal structure a team or function is active in can have an influence on the activities a team is performing (Orlikowski & Yates, 2002), and thus can opposing temporal structures result in opposing activities . In this way, a better understanding on integration can be developed.

For this research the following question is formulated:

How can we understand the integration of digital and traditional marketing teams from a temporal perspective?

To research this, an ethnographical case study is conducted in which semi-structured interviews are used as the main data collection method. In this way in-depth insights could be gained about the current integration between the teams. For developing a better understanding on the integration of teams the focus of this research is on finding inter-functional conflicts which impede the successful integration of the marketing teams. In this case, different inter-functional conflicts came to light regarding orientation, priorities, routines and lead time. Using a temporal perspective on inter- functional coordination resulted in a better understanding of the integration of teams, and the role of temporal structures in inter-functional conflicts. The opposing temporal structures of the teams showed to be the cause of the mentioned inter-functional conflicts, and in that way influences the alignment and integration of the marketing teams.

So, using the mentioned theoretical framework resulted in a better theoretical understanding of the

underlying reasons why inter-functional conflicts arise between teams, since it shows the role of

different temporal structures in conflict and integration. Besides that, this research has a practical

contribution by concluding that management has the important task to coordinate the temporal

structures of different teams to reach integration.

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Preface

This thesis is written as a the final part of my master Business administration at the University of Twente. After doing a bachelor in Public administration, I decided to follow the master Business administration with a specialization in Marketing & Strategy.

This thesis is completed at Kramp Group Varsseveld. Therefore I want to thank Kramp Varsseveld for the possibility they gave me to write my thesis, and the good time I had. More specific, I want to thank my supervisor at Kramp, Robbert van Dijk, for his help in doing this research. Besides that, I want to thank all employees of Kramp for their willingness to cooperate during this research and their interest in my study.

Furthermore, I would like to thank my supervisors from the University of Twente. As my first supervisor, I want to thank Raymond Loohuis for the support and guidance during the process of writing this thesis. Your feedback has been very helpful and always brought new insights in how to proceed. In addition, I want to thank my second supervisor Kasia Zalewska-Kurek for her help!

Stan Heinen,

Varsseveld, June 2017

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Inhoudsopgave

Abstract ... 2

Preface ... 3

1. About Kramp ... 5

2. Introduction ... 5

2.1 Relevance of the study ... 5

2.2 Introduction of literature ... 6

3. Problem statement... 7

4. Purpose and contribution of the study ... 7

5. Research questions ... 8

6. Theoretical framework. ... 9

6.1 Inter-functional coordination ... 9

6.1.1 Inter-functional communication ... 9

6.1.2 Inter-functional collaboration ... 10

6.2 Inter-functional conflict and the influence of temporal structures ... 11

6.3 Theoretical conclusion ... 13

7. Method ... 14

7.1 Ethnographical case study ... 14

8. Results ... 18

8.1 Differences in temporal structures ... 18

8.2 Goal and orientation in different temporal structures ... 20

8.3 Setting priorities in temporal structures ... 21

8.4 Lead time of projects ... 22

8.5 Routines in temporal structures ... 23

8.6 Communication, information sharing and collaboration ... 24

8.7 Overview of results ... 27

9. Conclusion ... 28

10. Discussion ... 29

11. Managerial implications ... 31

11.1 Cross-functional teams within aligned temporal structures ... 31

11.2 Limitations and future research ... 32

12. References ... 33

Appendix A ... 35

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1. About Kramp

This master thesis is written for and at Kramp Varsseveld, a technical wholesale company, founded in 1951, which has grown from a small one man company to a big international company active in 24 countries all over Europe. Nowadays, Kramp is market leader in agricultural spare parts and

accessories. In the past 65 years Kramp also started focusing on ‘construction’ and ‘forest & garden’.

Kramp is more and more aiming on generating revenue through the digital channel the last years.

This has resulted in the fact that more than 90% of the turnover is now generated via digital

channels. Despite this, Kramp seems not to be organized as an e-business yet. New developments of the web shop were not being done in a structural way and in a low pace. Marketing initiatives were mostly driven through the sales department from a traditional model. As a result of this, a clear vision and strategy has been created in which Kramp is ‘To be the essential partner in the agricultural parts & accessories market by having a strong presence in all relevant channels for the customer’.

This means Kramp is now working on a transition to become a real e-business driven company.

Looking at the marketing & e-business department you see that changes are made. Where previously only two teams existed within the department, namely International Marketing and the relatively new Market Intelligence team, now a new team responsible for improving the customer experience on the web shop is added to the department. The International Marketing department is being transferred from a more or less graphic production department, which was facilitating local

marketing and sales departments, into a department which is more in the lead in terms of Marketing Strategy.

Even though these teams are positioned in one department, we see that there is a need to align different tasks. In the past International Marketing was the only team working on communication.

They still are responsible for the marketing strategy, and offline communication. But since the new e- business team is in place, a whole new dimension exists as they are responsible for everything that is related to the front-end of the web shop. A new team brings along new dynamics within a

department. This new formation brings the need for alignment.

2. Introduction

2.1 Relevance of the study

The importance of alignment and integration of marketing teams is increasing the last years, since firms are nowadays more and more doing business over the internet. Firms start up new marketing teams to focus on digital marketing activities. The importance of integrating these new digital marketing teams with the traditional marketing teams lies in the fact that a synergy exists between online and offline marketing (Naik & Peters, 2009). This means that the combined effect of the offline and online activities exceeds their individual effects. Rakic and Rakic (2014) add that digital and traditional marketing represents one brand and therefore should share a consistent look and feel that aligns with company’s goals. Besides this, the different marketing teams should be aligned to increase effectiveness and efficiency of the marketing activities. By aligning the digital and traditional marketing teams the operational efficiency and effectiveness of different processes can be improved (Wooldridge & Minsky, 2002). This points to a positive effect of integration for more internal

efficiency.

6 So, the importance of aligning and integrating the digital and traditional marketing teams is

recognized in the current literature. By successful integrating the different functions the impact of marketing activities can be improved, since a synergizing effect exist between the activities (Naik &

Peters, 2009). Besides that, alignment means that there is a better collaboration between the different teams which leads to higher internal efficiency (Wooldridge & Minsky, 2002).

2.2 Introduction of literature

As stated, a common agreement exist on the importance of integrating the new digital and

traditional marketing activities (Naik & Peter, 2009; Bendoly, 2005; Kollmann & Häsel, 2008). Aligning different functions within a firm is something literature has focused on for years. The literature on inter-functional coordination has shown to be very useful for integrating and aligning different functions. Besides this, the literature on temporal structures of Orlikowski and Yates (2002) states that different time perspectives within a firm can have an influence on the internal alignment of teams or departments. Therefore this research discusses both theories and makes use of a

theoretical approach which combines the literature of inter-functional coordination with literature on temporal structures. This theoretical approach will be used to analyse the inter-functional dynamics and inter-functional conflicts within the marketing department. Besides that, this

theoretical approach will help to better understand why inter-functional conflicts arise between the different teams. It means that this research uses a theoretical lens of inter-functional coordination with a temporal perspective.

In the current literature a common agreement on the importance of market orientation is noticed. As Narver & Slater (1990) argue, market orientation is the organization culture that most effectively and efficiently creates the necessary behaviours for the creation of superior value for buyers and, thus continuous superior performance for the business. Narver & Slater (1990) state that market orientation consist of three components: customer orientation, competitor orientation and inter- functional coordination. Inter-functional coordination is seen as a crucial aspect to reach integration between different functions, and is defined as the coordinated utilization of company resources in creating superior value for target customers (Narver & Slater, 1990). Wooldridge and Minksy (2002) define inter-functional coordination as the process that assimilates the results of being customer and competitor oriented and allows coherent action. Wooldridge and Minsky (2002) add that being inter-functional coordinated is important because diminishing gaps between different business functions can lead to increased synergies and better operational efficiency and effectiveness. Inter- functional coordination is particularly crucial in B-to-B relationships, where a broader interface between the firm and its customers increases the customers' points of contact with the firm across its different functions (Frösen et al, 2016). So, inter-functional coordination synchronizes personnel and other resources to create value.

Secondly, literature on temporal structures is used. Research of Orlikowski and Yates (2002)

discusses the role and influence of time in organizations. People and teams within organisations can

have different perspectives on time which can result in the fact that different temporal structures

exist within an organisation or department. These temporal structures are created and used by

people to give rhythm and form to their everyday work practices (Orlikowski & Yates, 2002). Wu

(2009) agrees by defining temporal structures as patterned organization of time used by humans to

7 help them manage, comprehend or coordinate their use of time. A temporal structure is formed by different time aspects, like for example planning, time pressure, clock hours, booking hours and deadlines. People establish and reinforce those temporal structures as legitimate and useful structures for their activities, and in that way they become taken for granted and serving as a template for the timing and rhythm of their actions. So, the temporal structure a person or team is active in shapes the everyday actions of that person or team. This also means that the types of temporal structures used affect the individual and organizational efficiency (Wu, Ngugi and Moody, 2016).

Both the theory on inter-functional coordination and the theory on temporal structures emphasise the negative role of conflict in the alignment of different functions. The literature about temporal structures explains that being active in different temporal structures, with opposing views on time, can result in opposing activities (Orlikowski & Yates, 2002). Therefore it is important to understand the differences in time perspectives, because these differences in temporal structures can result in conflicts which constrains the alignment between the teams. Also the inter-functional coordination literature views inter-functional conflict as an important aspect impeding the success of integration (Ruekert & Walker, 1990; Kohli & Jaworski, 1990). This is why minimizing the amount of inter- functional conflict is seen as an important aspect for successful integration of teams.

Until now, research on how to integrate different functions has never taken into account the role of temporal perspectives. This means that the influence of temporal structures on integration cannot be explained yet. So, there is a lack of understanding on how we can view integration of teams from a temporal perspective.

Because this is still an unexplored aspect of inter-functional coordination this research will combine both theories. Combining both theories means that inter-functional coordination of different functions is not only focused on the coordination of processes and resources, but also on the coordination of the temporal structures in which these teams are active in. In this way a better understanding on how to integrate different functions can be developed.

3. Problem statement

As mentioned, integrating and aligning different teams and departments within a firm is one of the main challenges firms are nowadays facing. How to successfully integrate different functions is something research has paid a lot of attention to. Despite the fact a lot of research is done at coordination, the role of temporal structures in integrating teams is still an unexplored topic. So, the problem in this case is the fact that firms are still struggling with the question how to integrate different teams, and the role of temporal structures in this regard is still unknown.

4. Purpose and contribution of the study

The aim of this research is to develop a better understanding on how to integrate different functions

within a firm, in this case the new digital and the traditional marketing teams. Many managers are

facing the challenge of successful integrating functions within a firm. Before coordination of

marketing functions was less complicated since all marketing was offline. Now these traditional

activities have to be integrated with the new digital activities. Good alignment of these two

8 marketing functions will increase the effectiveness of the marketing department. As a start, this means that the challenges and conflicts between different teams have to be recognized. Even more important is to understand the reason why these challenges and conflicts occur. This research therefore focusses on identifying the current conflicts within the marketing department and find the underlying reasons for these conflicts. After that an advice for integrating the online and traditional marketing teams and their activities will be provided, using a temporal perspective on inter-

functional coordination.

This study contributes to the current literature in two ways. At first this research contributes by researching the integration of new digital marketing and traditional marketing. How to integrate digital and traditional marketing activities is a question literature has no clear answer on yet. It has only been a few years since attention is paid to this issue, since the rise and use of online marketing in companies is something that developed in the last years. Furthermore this research contributes to the current literature by combining the literature on inter-functional coordination with the literature on temporal structures, which results in the a new way to examine the inter-functional dynamics within a firm. By using this new theoretical lens, new insights can be obtained on how to successfully integrate different marketing teams. So, this research contributes to the emerging literature on the alignment of marketing teams by developing a theory for inter-functional coordination taking the role of temporal structures into account.

5. Research questions

As stated in the introduction, firms are nowadays facing problems in the organization of their departments. Integrating and aligning different teams is seen as way of the challenges firms are facing. The same is the case for the marketing department. Integrating digital and traditional marketing teams is seen as an challenge, which can lead to problems. An example of this is an advertising campaign in which the offline promotion has a design which is not completely applicable for the online promotion. Furthermore, the role of temporal perspectives for inter-functional coordination is still an unexplored aspect. This is why the following research question is formulated:

How can we understand the integration of digital and traditional marketing teams from a temporal perspective?

Two sub-questions are formulated to elaborate the research question more in depth and to help to come to an answer of the research question. The sub-questions are focused on the role of temporal structure on integration, and the way in which conflicts plays a role in this relationship.

The sub-questions are as following:

- What is the relationship between the temporal structures of teams and integration?

- What is the role of conflict in this regard?

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6. Theoretical framework.

6.1 Inter-functional coordination

In the literature, inter-functional coordination is described as a component of market orientation (Narver & Slater, 1990; Kohli & Jaworski, 1990). Market orientation can be seen as the organization culture that most effectively and efficiently creates the necessary behaviours for the creation of superior value for buyers, and thus continuous superior performance. It is argued that for creating superior value for customers a firm should generate and disseminate information about customers and competitors and responses appropriately to current and future customer needs and preferences, in which responsiveness stands for a firms acting based on knowledge gained (Jaworski & Kohli, 1993). This means that being market oriented requires a customer orientation, competitor

orientation and inter-functional coordination. Inter-functional coordination is seen as essential in this process as it focuses on the internal organization and alignment of different functions, by integrating different teams and their activities. Poor coordination means that internal resources are not used in the right way, and value creation for the customers is not optimal.

According to Narver and Slater (1990) inter-functional coordination is based on the customer and competitor information and comprises the business’s coordinated efforts to create superior value for the buyers. Harris (2002) argues that inter-functional coordination is the extent to which different functions recognize and act on joint and equal responsibility for servicing the market. Integrating different teams and departments increases the ability of firms to serve the customer and create value. Also the literature on digital and traditional marketing has named the importance of integration for synergy (Naik & Peter, 2009), consistency of marketing (Rakic & Rakic, 2014) and clarity and maximum impact (Sheehan & Doherty, 2001).

So, inter-functional coordination is a component of market orientation and focusses on integrating different teams and their activities within a firm for better serving the market and creating customer value. To reach integration between teams and their activities, the literature on inter-functional coordination determined two essential elements, namely inter-functional

communication/information sharing and inter-functional collaboration. This is why Auh and Menguc (2005) define inter-functional coordination as the integration and collaboration of various functional areas within an organization as a way of enhancing communication and information to better meet the organization’s goal.

6.1.1 Inter-functional communication

The role of information sharing and communication is stated as a crucial element for coordination. In an e-business, the electronic channels and internet-based technologies facilitate market information gathering and the internal dissemination through information systems (Borges et al, 2009). Vargo and Lusch (2004) empathize the role of information by developing the service-centered dominant logic which implies that value is defined by and co-created with the consumer rather than embedded in output only. Co-creation means collaborating with and learning from customers and being

adaptive to their individual and dynamic needs. To do this, firms should provide information to, or

use the information for a consumer who desires it. It is through the differential use of information, or

knowledge, applied in concert with the knowledge of other members of the service chain that the

firm is able to make value propositions to the consumer and gain competitive advantage (Vargo &

10 Lusch, 2004). Therefor it is important that information permeates the entire firm and that strategic and tactical decisions are made and executed inter-functionally (Shapiro, 1988). Lado, Olivaras and Rivera (1998) argue that the process of inter-functional coordination follows the diffusion and use of information. Graw et al (2008) state that information exchange, defined as the formal and informal sharing of meaningful and timely information, is identified as a key component for success, in the way that information exchange ensures the coordination between the different actors. Day (1994) talks about market sensing when he refers to the role of information in a firm. He developed a process (figure 1) for learning about the market in which information is crucial. In this process, the distribution of information within the firm, the interpretation and the utilization are seen as inter- functional coordination.

Kohli and Jarworski (1990) name horizontal communication as a form of intelligence dissemination within a firm. In which horizontal communication is the lateral flow that occurs within or between departments, and serves to coordinate people and teams to facilitate the attainment of overall organizational goals. Kohli and Jaworski (1990) further emphasize the importance of effective dissemination of information because it provides a shared basis for concerted actions by different team or departments. Concerted actions in this case makes sure that everyone is working in the same direction, but also means that it is clear which team or department is responsible for a task to be performed. This shows that information dissemination is related to the following element of inter- functional coordination: collaboration.

So, for being able to really serve the customer, and add value, a firm needs customer and market information, disseminate and interpret it, before they can react. It shows the importance of inter- functional communication.

6.1.2 Inter-functional collaboration

Especially Kahn and Mentzer (1998) emphasize the importance of a second element, collaboration, for coordinating and aligning marketing functions in an effective way. Besides the discussed

information sharing, collaboration between different functions has a positive effect on the success of

a firms marketing results (Kahn & Mentzer, 1998). Inter-functional collaboration is seen as a process

where functional teams work together with mutual understanding, common vision, and shared

resources to achieve collective goals. The collaborating teams or departments view themselves as

highly interdependent, but working together to achieve mutual goals. Kahn and Mentzer (1998)

argue that inter-functional collaboration will positively influence the department performance. This

is because mutual understanding, collective goals, and the sharing of information and resources will

be more cost-effective by minimizing duplicated efforts and reducing time to complete activities

related to the respective department. Also Kohli and Jaworski (1990) argue that various departments

should engage in activities to meet customer needs. This theory of inter-functional collaboration is

relevant for departments, but also for teams within a departments, like the online and traditional

marketing functions. Collaboration will lead to higher integration of these teams, which will result in

more effective and efficient marketing activities. This theory is in accordance with the statement of

Kollmann and Häsel (2008) who say that collaborative integration of online and offline business

model represent a way of sustaining competitive advantage, and besides that argue that this

collaborative integration result in and synergy effect.

11 To conclude what is theoretically stated as important for integration and effective coordination of marketing activities, two things are found. At first, for optimal inter-functional coordination of marketing teams information dissemination and communication are important. Besides that, it is argued that inter-functional collaboration results in better marketing integration within a firm.

6.2 Inter-functional conflict and the influence of temporal structures

This study focuses on developing a better understanding on the challenge of integrating different teams, by taking the role of temporal structure into consideration. For successful integration, it is important to be aware of the problems and challenges integration of different functions can bring along. Literature has identified potential inter-functional conflicts that impede the integration of different teams or departments. This paragraph will discuss that integrating teams and their activities, while having different temporal structures and perspectives, can lead to inter-functional conflicts.

Inter-functional conflict is a intensively discussed topic in the literature. Kohli and Jaworski (1990) focus on the department level by defining interdepartmental conflict as tension between two or more departments that arise from incompatibility of actual or desired responses. Arnett and Wittmann (2014) agree by defining inter-functional conflict as the degree to which the relationship between the functional areas is characterized by tension and negative feelings. Jehn and Bendersky (2003) state that conflicts are perceived as incompatibilities or discrepant views among parties. It shows that all definitions are focused on more or less the same elements of tension, incompatibilities and different views.

The importance of inter-functional conflicts lies in the fact that conflicts lead to lower integration between teams. Ruekert and Walker (1990) argue that inter-functional conflict inhibits

communication. Kohli and Jaworski (1990) add that less communication will lead to inhibited market intelligence dissemination. Arnett and Wittman (2014) argue that conflict weakens relationships, which in turn, reduces open communication and knowledge sharing. Additionally Kohli and Jarworski (1990) argue that tensions is likely to inhibit concerted response to market needs. Both are elements of inter-functional coordination, and conflicts therefor lowers the integration of (online and

traditional) marketing functions. This means that the main challenge in integrating different

functions, is to minimize the inter-functional conflicts that impede inter-functional collaboration and communication, so integration is not hindered.

Analysing the literature, different types of inter-functional conflicts can be distinguished. Ruekert and Walker (1987) state that inter-functional interaction and collaboration is motivated by the desire to achieve both the broad common objectives of the business and specific marketing objectives and individual goals. So functional areas need to interact, share information and collaborate to achieve goals. However, goals of different functional areas are rarely consonant, which can lead to conflicts.

So conflicts can arise because of differences over the definition of joint goals, but also because of differences in the means by which those goals are to be reached or the use of resources (Ruekert &

Walker, 1987). The mix of collective goals and self-interest that individuals bring to inter-functional

interaction, together with their functional interdependence, creates a situation conducive to

disagreement (Ruekert & Walker, 1987). Arnett and Wittmann (2014) agree on the fact that

12 dissimilar perceptions of goals lead to conflict, and add that different ideologies, perspectives and priorities are also reason for conflict.

Jehn and Bendersky (2003) divided three types of inter-functional conflicts, caused by different reasons. At first, relationship conflicts, which exist when there are interpersonal incompatibilities among group members. This type of conflict often includes personality differences as well as differences of opinion and preferences regarding non-task issues. The second type, task conflict, is caused by disagreements among group members about the tasks being performed. Jehn and

Bendersky (2003) argue that task conflict pertains to conflicts of ideas in the group and disagreement about the content and issues of the task. Task conflict exists when there are disagreements among group members about the content of the tasks being performed, including differences in viewpoints, ideas, and opinions. A conflict in viewpoints can for example be a difference in the orientation, like being customer oriented or cost oriented, or being more focused on long-term or short-term. This can lead to the fact that different functions have different opinions and ideas. The third form, process conflicts, are about the means to accomplish the specific tasks, not about the content or substance of the task itself, but about strategies for approaching the task (Jehn & Bendersky, 2003).

Examples of such disagreements are about the composite of a team and who should do what, debates about resources, and struggle among teams about how to schedule tasks efficiently.

Discussed is the fact that inter-functional conflicts have a negative influence on the integration and alignment of different teams. In order to effectively manage these inter-functional conflicts, the reasons why the conflicts occur have to be determined. The theory of Orlikowski and Yates (2002) about temporal structures discusses the role and influence of time in organizations, and can bring new insights on the reason why inter-functional conflicts arise between team. Using a temporal perspective in this way can help to understand and explain conflicts better.

Orlikowski and Yates (2002) provide a view on time by stating that different temporal structures exist in organizations, and these structures have an influence on the everyday activities within an

organization. Different temporal structures means that teams can have opposing views on time, and

how time is understood subjectively. Different functions within an organization can have different

temporal structures and orientations, and in that way the influence of time on the activities they

perform can differ among teams. These temporal structures guide, orient and coordinate their

ongoing activities. The practice based perspective on time of Orlikowski and Yates (2002) suggest

that people in organizations experience time through the shared temporal structures they enact

recurrently in their everyday practices. These people may view time as chronos or kairos, which is

related to experiencing time as clock-based or event-based. A chronos view on time exists when time

is measured by the chronometer and not by purpose. It is typically used to measure the timing or

duration of some action (Orlikowski & Yates, 2002). The kairos view is related to events in the way it

looks at the measurement of the activities and actions of people. Whether expressed in clock or

event time, the temporal structures are created and used by people to give rhythm and form to their

everyday work practices (Orlikowski & Yates, 2002). Orlikowski and Yates (2002) also argue that

people often routinely draw on temporal structures that they have previously used to organize their

practices because they see it as legitimate and useful for organizing their team. This is also something

that can play a role with traditional marketing teams. They are often used to the structure in which

they operate.

13 Most important, different temporal structures constrain and enable different action within an

organization (Orlikowski & Yates, 2002). Peoples actions shape and are shaped by aspects of temporal structures such as schedules and deadlines. It is through these temporal structuring that time is made meaningful, but also has consequences in organizational life. Temporal structures can interact in different ways. They can be interrelated or separated, and differ in the extent to which they are compatible, complementary or contradictory. When the temporal structure within a department or firm turn out to be contradictory, the teams are likely to have opposing activities and decision-making. When this happens within a department it can lead to tension. In this way it can be argued that tension between opposing temporal structures can be a reason for inter-functional conflict, and thus limit the integration and alignment of the different teams.

6.3 Theoretical conclusion

Combining the theories of inter-functional coordination and temporal structures results in a theoretical framework of inter-functional coordination with a temporal perspective. At first, the theory of inter-functional coordination presents the two main aspects on which successful alignment and integration of different functions is based: communication and collaboration. Besides that, it shows the negative influence of inter-functional conflicts on these two aspects. Using the theory of Orlikowski and Yates (2002) a theoretical basis is provided to find the underlying reasons for these conflicts, as it is stated that temporal structures can interact in a contradictory way and in that way cause inter-functional conflict. Management of the inter-functional conflicts in this case requires an adjusted form of inter-functional coordination which is also focuses on aligning the temporal structures. The overall theoretical framework summarized in a model is shown in figure 1. As said, it illustrates that communication and collaboration between opposing temporal structures can lead to inter-functional conflicts. To analyse the temporal structure a team is active in, this research focusses on different time concepts that together shape the temporal structure. This comes back in the focus on differences in the time concepts, like having a clock or event based view on time, the degree in which teams work with deadlines, the role of routines, the way of planning of the team and their schedule, the experienced time-pressure, and whether the team has a long or short term orientation. In this way a better understanding can be developed of the differences in temporal structures between the teams. This is important because these temporal structures of the teams have an influence on their activities and decision making. This means that opposing temporal structures can lead to different inter-functional conflicts between the teams. Different theoretical concepts are mentioned in the literature as potential reasons for inter-functional conflict. So this research argues that opposing temporal structures can results in conflicting differences on these concepts like the goal and orientation of the teams, the priorities set by the team, the way of

working, the use of resources, different viewpoints and scheduling efficiently. Conflicting differences on these concepts leads to inter-functional conflict. By making use of these concepts, the inter- functional conflicts can be distinguished. This eases the analyses and brings the opportunity to give a more clear overview of the relation of the differences in temporal structure and the inter-functional conflicts.

To manage these conflicts, figure 1 furthermore illustrates that there is a need for alignment of the

opposing temporal structures. This can be done by changing the time aspects and perspectives of the

teams. It means that the analysed differences in time concepts and perspectives have to be reduced

by more equalizing the time concepts and perspectives of the teams.

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7. Method

This research is an exploratory research. As Ramli, Rashid and Mohammed (2012) note, an

explorative research is focused on the identification of defined characteristics or aspects of a larger number of practical situations. These characteristics are based on the findings in the literature study by using the literature about inter-functional coordination and temporal structures. To find out how this integration and alignment is in practice and identify problems that occur in this process,

interviews will be conducted. This again is a qualitative research method, since Straus and Corbin (1998) define qualitative research as any type of research that produces findings not arrived at by statistical procedures or other means of quantification. By doing interviews, a deeper understanding can be created because of the fact that more specific questions can be asked and answers can really be explained. It is expected that interviews will be needed to find underlying reasons of the issues that impede the integration of a new marketing function and strategy, with the already existing marketing function and strategy. By making use of interviews, interviewees also have the

opportunity to come up with problems and challenges that is not before mentioned in the literature.

Questionnaires are in this case to limited, and won’t bring new insight on the subjects.

7.1 Ethnographical case study

An ethnographical case study (ECS) analyses the behaviours and internal dynamics in a specific context. This is exactly what is needed for this research: an analysis of the internal behaviours and dynamics within Kramp’s marketing departments. Visconti (2010) combines the domains of ethnography and case studies, and discusses the methodological aspects of such a study. Visconti (2010) addresses the formalization of the key compulsory and complementary stages for doing ECS marketing research in business contexts. By discussing these methodological aspects of

ethnographical case studies, a more structured idea on how to conduct ethnographic inquiry is given.

For a successful ethnographic case study Visconti (2010) discusses the following phases: definition of

goals, the sampling techniques, the process of ethnographic immersion, the collection of data, the

interpretation of data and the reporting.

15 The goal of this research is to develop a better understanding on how to successfully integrate different functions by identifying inter-functional conflicts that arise between functions, due to influences of the different temporal structures of the teams. The goal setting focuses on the importance of verbalizing the research objective. The way in which the goal of the research is verbalized to the practitioners enlightens the communicational divide eventually separating the academic and the managerial spheres (Visconti, 2010). The goal of the research has to be clear for the participants and both theoretical and practical relevant. This is done by negotiating and determining the goal of the research based on Visconti’s (2010) suggestions.

The second methodological aspect concerns the sampling procedure. Visconti (2010) argues that the researcher has to select organizational units to be researched, and the key informants in these units.

In this case the research is focused on the different units within the marketing departments, so the digital marketing team and traditional marketing teams. Visconti (2010) argues that informants have to be chosen among the most competent agents to increase the researcher's chances of acceding to valuable, rare information. The most valuable and key informants in this case are the members of the teams. Important are the managers, who have the most knowledge and experience. Besides that, key informants are the teams members who have the most involvement with the other marketing teams and experience the inter-functional conflicts. By selecting the key informants from different teams the variety and contrast between informants is guaranteed. This increases the opportunity of multiple comparisons and interpretations (Visconti, 2010). With concern to the sample size, Visconti (2010) states that ECS research adheres to the principal of theoretical saturation, which simply means the point at which incremental learning is minimal because the researcher is observing phenome seen before. So depending on the variation of input, the sample size can be enlarged. An overview of the interviewees and their function is shown in figure 2.

Function interviewee Marketing team E-business manager

E-business

Web analyst

E-business

UX designer

E-business

Content marketer

E-business

E-mail marketer

E-business

Marketing production supervisor International marketing Project manager

International marketing

International marketing

International marketing

International marketing

International marketing

Market intelligence

The third aspect concerns the ethnographic immersion. Immersion deals with the researcher's gradual naturalization in the inquired culture aiming to consolidate his/her cultural competence.

Overall, the chance of participating to the company's everyday life helps reduce the gap separating

the researcher from his/her informants. In this way, the boundary separating the observer and the

observed eventually tends to blur and opens the way to potentially more reliable and relevant data

(Visconti, 2010). In this research, I got involved on marketing departments floor, and in that way

becoming a member of the department everyday activities. Besides that, introductory meetings with

employees of the teams are held to get to know each other. This means that the first personal

16 barriers are removed and the first cultural insights are known. In this way the interviews should be more naturally and interviewees should be more willing to tell their story.

The fourth aspect focuses on the data collection. The first way of collecting data is done by observations of contact and collaboration between different teams on the department floor. Field notes can be made of this. The most important tool for collecting data in this research is conducting interviews, since the underlying reasons that cause challenges in the integration are seen as most important. This is in accordance with Arnould and Wallendorf (1994) who argue that observational data do not provide direct access to the perceptions, values and beliefs of informants and do reveal little about informants’ internal states. Since researchers cannot know which data are going to be more relevant than others, it is important to record all possible information(Visconti, 2010). This is why the interviews, with approval of the interviewees, will be recorded. In this way the first order data will be generated.

This research uses a way of interviewing which is seen as semi-structured, for which an interview guide is used (Appendix A). Such interviews combine specific questions, to bring forth the foreseen information, and open-ended questions to elicit unexpected types of information (Hove & Anda, 2005). Follow-up question can be used to clarify specific responses when needed. So, it gives a structure for the interview to make sure that all relevant aspects are covered, but also allows probing for more specific information and more details when needed for the research.

The interview questions focus on the current integration of the online and offline marketing teams and their activities, the problems the different teams experience between the teams, and the role of temporal structures in these conflicts. At the start of the interview general questions about the current communication and collaboration between the teams will be asked, to get an indication on how the marketing teams are working right now. So, ‘in what way do you come in contact with the other team?’, ‘do you feel like you are always good informed by the other team and have access to needed information?’, ‘in what way and in what extend is there collaboration between the team?’, and ‘do the teams inform each other and collaborate to your satisfaction?’ are asked questions.

Important for this research is to determine the inter-functional conflicts that occur within the

marketing department. These questions are be based on concepts of inter-functional conflicts named in the literature like differences in goals and orientation, viewpoints, ideas, priorities or how to reach the goal. On the basis of these concepts interview questions are developed: ‘do the teams differ in their goals, and in what way?’, ‘How do the teams differ in the way they work?’, ‘in what way do the teams differ in their way of thinking, like different perspectives or priorities?’, ‘do the teams differs in the ways they think these goals should be reached? and ‘do the teams conflict over who is responsible for specific tasks?’ are examples of question for identifying inter-functional conflicts. Because a semi- structured interviews gives the opportunity to search for deeper understanding, a link is tried to be found between the role and influence of time perspectives of the teams and the inter-functional conflicts. To identify the differences in time perspectives between the teams questions are focused on the different time aspects/concepts discussed in the literature framework. Again, on the basis of these time concepts interview questions are developed to analyse the temporal structure of the teams, like for example: ‘what is the role of time in your time’, ’what way of planning is used, long or short term?’, ‘how do you experience the role of deadlines and time pressure within your team?’,

‘what is the importance of routines within your team?’, ‘how flexible is your team and how much

freedom do you have in spending your time?’, ‘how are you influenced by these time aspects, and

17 how does this differ from the other team?’. Together they give a good overview of the temporal structure a team is active in,

Besides that, this research tries to elaborate this knowledge by identifying unknown challenges.

Therefore the interviews also focus on reasons for inter-functional conflicts not defined in the literature yet, by giving the interviewees freedom to come up with their own thoughts, without influencing them by asking for known inter-functional conflicts.

Second order data plays an important role in the fifth aspect: the interpretation of data.

Ethnographic case studies necessarily imply the researcher's personal elaboration of first order data that are translated into second order interpretations (Visconti, 2010). This is why it is important that explanations need to be multiple. So, to increase the credibility of the study, I should offer the possible alternative interpretations and argue both for and against them. Besides that, Visconti (2010) names two ways of interpreting data: interpretations showing proximity to the informants worldview are considered to be emic, and interpretations relying on researchers previous knowledge and cultural schemata are seen as etic. Van Maanen (1979) puts it simply that first-order concepts are the ‘facts’ of an ethnographic investigation and the second-order concepts are the ‘theories’ an analyst uses to organize and explain these facts. By making use of both emic data and etic

interpretation the research relevance of the results are improved since findings serves both the academic and the managerial audiences.

To analyse the data, the recordings of the interview will be transcribed. This is done to ease the analyses and interpretation. After that, the transcript is analysed and answers are coded on basis of different inter-functional conflicts, and on the different time aspects mentioned before. In this way a better overview for analyses is created. This is done by first determining the problems between the teams that are perceived by the interviewees as a negative influence on the integration between the teams. To explain these conflicts, all answers that include time related aspects are coded to give an overview off the role of time within the teams. After that, on the basis of both quotes and

interpretation, relationships between the time perspectives and conflicts are determined.

In this research it is tried to use multiple explanations. This means that to present a credible study, the inter-functional conflicts are both analysed from the point of view of the digital and the

traditional marketing team. Furthermore, both quotes from interviewees as interpretations of these quotes by me are used in the analyses.

Finally, Visconti (2010) argues that the writing aspect is important, in which he distinguishes three writing styles: realism, impressionism and confessional writing. Realism implies the highest detachment from the researcher. Impressionism envision the researcher more of a storyteller leading to warmer presentation of data, and confessional writing gives the most room for the writer’s emotion (Visconti, 2010). Depending on the organizational setting different styles are more appropriate. Goal and profit dominated organizations better fit to realist and impressionist

approaches, while more participative organizational cultures can be better reached by confessional presentation of facts. Kramp seems to fit more with the characteristics of a goal and profit

dominated organization since it is such a big organization and goals are clear guidelines in their daily

activities. This means that the realist approach will fit best with Kramp, so the situation is written in a

detached and the most objective way.

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8. Results

Analysing the dynamics within the marketing department of Kramp various problems and challenges came to light. It turned out that most challenges occur between the e-business and international marketing teams, due to the interdependency of both teams. For this research it is important to emphasise that the international marketing team can be divided in two groups, a project

coordination/specialist part and a marketing production part.

Interesting to see is the fact that, like discussed in the theoretical framework, the inter-functional conflicts and challenges can, or partially can, be explained due to the differences in time perspectives within the department. As said before, temporal structures can constrain and enable actions. In this case, the constrains from temporal structures are most relevant. The results show that the role temporal structures is important because it helps to understand the underlying reasons for some inter-functional conflicts. Therefore, temporal structure is the first aspect to focus on. After this the analysed inter-functional conflicts are discussed.

8.1 Differences in temporal structures

Nowadays the international marketing department consists out of three different teams, from which the e-business team is the newest. This extra team within the department has caused new and different inter-functional dynamics. The e-business team and international marketing team are dependent of each other. Initiatives and projects from the e-business team need to be finished by the marketing production before implementation, which is a part of the international marketing team. So e-business needs international marketing for finishing their ideas and plans, and international marketing needs e-business to deliver these plans in the right way.

Before the new e-business team was added to the marketing department there were no different time perspectives that conflicted with each other within the department. The e-business team changed this. Arguing that it fits the best with the activities of their team, they adopted a way of planning which is called a scrum method. The most important characteristic from this method is the use of sprints. A sprint is a planning for two weeks in which is determined what should be done. A list of all different projects that a team wants to do is limited to a plan with (parts of) projects which should be focused on the following two weeks. This method is chosen with the idea that the

circumstances change and in that way the planning of a team cannot be predicted for a longer term.

In this way using the scrum method results in a team which is more agile and can easily respond to changes they are facing. This is also argued by an e-business marketer who states that:

‘because we work with sprints we are more flexible. We can now focus on this project and after that on another project’.

So when there is a need to switch in the kind of projects that should be done, this can be done more easily.

The international marketing team shows a complete different way of planning. Especially the part of

the team responsible for the marketing production. Time plays a completely different role in their

19 team, comparing to the rest of the department. As stated by an international marketer responsible for the marketing production:

‘We have to book hours, we are obligated to book hours on everything that we do’.

This already shows that time is way more emphasized in the international marketing team. Besides this, international marketing is way more focused on deadlines they have to reach since they are not only connected to the e-business team. As an international marketer states:

‘we have fixed deadlines for promotions by local marketing. And that is for us the normal production’.

Another point that characterizes the role of time at the international marketing is their long-term planning. As an international marketer states:

‘We have planned hours per years’ on which is added that ‘at the last quarter of the year our resources are set, based on the global marketing planning’.

The international marketing team therefor works with a long-term planning to book the needed hours, and to plan all activities as efficient as possible. As an international marketing coordinator also emphasizes ‘I’m not saying that both teams are completely opposed, but the difference in the way we work is really big’.

So, on the one hand we see a team working on the basis of a two week planning. Within these two weeks they have the freedom to work on the projects chosen for that period. They do this in their own way, and decide for themselves how and when to spend time on a specific project. It also means that the e-business team is working with a more event-based view on time. They decide the time spend on their activities, which means that the time is not fixed. Depending on the to-do list time is spend on certain projects. It is more a dynamic process which is depending on the specific event.

On the other hand international marketing is really focused on the long term planning, with the obligation to book hours so everything they do can be checked and the use of time can be explained and justified. They work with a lot of deadlines, which also means that there is less freedom for this team in their activities. They differ from the e-business team since they have a more time-based view.

These points shape the temporal structures the teams are working in, which results in differences in

temporal perspectives. On the basis of these temporal structures, different actions and conflicts can

be explained, since they temporal structures both constrain and enable activities.

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8.2 Goal and orientation in different temporal structures

One of the main conflicts that exist between the different teams within the marketing department is related to the temporal orientation and goals of the teams. This inter-functional conflict is most relevant for the e-business team and the international marketing production team.

As stated before, temporal structures can constrain certain actions and activities. This is something that comes back analysing both marketing teams. The temporal structure of the teams have an influence on how goals can be pursued and how the orientation of a team is put in practice.

An example that illustrates how the different temporal structures have influence on the goal and orientation of the teams is as following: The email marketers of the e-business team developed a new template for their emails. Argued and tested by e-business, these improved emails result in higher earnings, and besides that improves the customer satisfaction. Both aspects which are highly valued by Kramp as an organization. For them a good reason to pass these templates on to

international marketing for production and implementation. But as an e-business marketer stated:

‘the web editor of international marketing agreed on the fact that this email would be better, and would definitely result in higher earnings. But he also told me that he is not going to do it. It will take him more time to prepare, time he doesn’t have. Very understandable, since it will double his work and will, for example, result in 80 hours of work instead of 40’.

This resulted in the fact that although the new plan for the email matches to the core values of Kramp, the plan got delayed and it is unsure whether it will be further used.

This already denotes a discrepancy in the orientation of the teams. As an e-business marketer also states:

‘two different models exist, one focused on service and one focused on efficiency, which are very opposite to each other. That also is somewhat the case here. There is a team really focused on production, efficiency and how long will it take me to produce. Another team tries to threat the customer as the king and inform them on time’.

This has everything to do with the different time perspective discussed before. The use of the scrum method at the e-business team enables them to be really customer and value oriented and fit their goals and activities to this orientation, since their temporal structure gives them more freedom in their daily work. The temporal structure of the international marketing team enables the efficiency of their marketing production. But on the other hand constrains activities to be really customer

oriented, because more customer oriented activities may take more time and lead to less efficient activities. This problem is exactly what an e-business marketer described:

‘of course they are also customer focused, but because of the time aspect they are really constrained in some things’.

Being customer-oriented means that effectiveness of the activities is the most important, and

efficiency is less important. The orientation of the international marketing can be seen as internally

focused, which leads to the focus on efficiency. So, the degree of customer orientation is constrained

by their temporal structure, which leads to differences in orientation and goals between the both

teams, which do not fit with each other.

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8.3 Setting priorities in temporal structures

Every team within the marketing department has to set their priorities. E-business almost has unlimited options in which they can improve the online marketing and the web shop. International marketing always has come up with new marketing project, and market intelligence will always have so much data that not everything can be analysed immediately. It would be most ideal for alignment, when all teams would set their priorities on the basis of the same aspects. Is this not the case, aligning priorities can become a problem.

E-business gives priority to projects that are focused on customer satisfaction and business value, and determines this by making use of measurements. International marketing is acting in a complete different setting, which influences their priorities. E-business has the possibility to set their priorities almost independent. International marketing is connected to different local marketing teams from all different countries Kramp is active in, and is in that way not as independent as e-business. Besides that, they are responsible for the webpages of different brands. In that way they have to take care of around 70 different websites from all different countries. One international marketer stated that:

‘sales projects, typically sales projects of which we can have turnover from local marketing, will have priority. Internal projects will always come later. And unplanned projects will be the last, even if it is from local marketing’.

The fact that international marketing gets paid for projects they do for local marketing has an important influence on their prioritizing of activities. Their resources are based on the projects they do for local marketing, and the revenue they earn from this. The fact that e-business does not pay international marketing results in unfair competition for the resources of international marketing.

This means that international marketing is less objective on determining the value of the project itself, but keeps the value of the project in terms of direct payment for their own team in mind, which of course makes sense through their eyes. It does result in a discrepancy in the way projects are prioritized. Internal projects, like projects from e-business, therefor never seem to have the first priority.

From the viewpoint of e-business, the international marketing team seems not to use a method for prioritizing at all:

‘They work with their on method, actually a first come first gets method. So they don’t work on the basis of priority. This also means that is hard for us to earn our place. So often all their time is planned and we cannot influence their priorities. We can’t influence the next step of our activities’.

Because of the different temporal structures, e-business projects are often unplanned for

international marketing. At least, projects from e-business are never the first planned ones, which will also come back in the next aspect of transfer time. In this way the projects of e-business are never the first priority for international marketing. But it is also an undesired situation for

international marketing, since e-business cannot fulfil the planning requirements of international marketing.

A third reason for differences in priorities comes from the orientation of the international marketing

team. Projects from e-business are prioritized on the basis of value and customer satisfaction. In

general it can be said that these two aspects are not in accordance with being as efficient as possible,

since activities based on value and customer orientation are more focused on effectiveness and the

result of the activity. As an e-business marketer states:

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‘Our way of working and our projects are focused on conversion, value and satisfaction which can result in the fact that work will get less efficient’.

8.4 Lead time of projects

The teams within the department are dependent on each other. Working on a project means that tasks have to be passed on to other teams. Reducing the transfer time to the minimum results in a more efficient workflow within the organization. A project often needs a lot of input from different teams. Because of that, a project is often transferred back and forth between different teams. This is also the case at Kramp. According to an e-business marketer:

‘It becomes difficult when tasks have to be transferred to others’.

In this case the different temporal structures again play an important role. The influence of the temporal structures is well illustrated when a project process is followed. Kramp decided to start delivering to their customers on Monday, which they never did before. Because of this the e-business team started a project to build an internet page with information about these new deliveries and needed email communication to inform the customers about this change. This project had to be done within 3 weeks. In this process international marketing is needed. After they developed a new e-email template, e-business contacts international marketing because they needed a web editor for the production. Due to their strict planning and their focus on the efficiency of their team, there was no time at that moment, so it had to be scheduled later. Besides the web editor, a content marketer from the international marketing team is needed, which is active in the same temporal structure as the web editors which leads to the same problems in transferring the tasks. No time was available at that time. So, one marketing team is in the middle of a project, which should be finished within 3 weeks, but cannot proceed because there is no time to work on it at the international marketing team, since they are working in a completely different temporal structure, so all their resources are already booked. This results in the fact that it is almost impossible to finish a project, which is not even complex, within a few weeks.

As a results from the above mentioned difficulties in the transfer of tasks, alternative ways to plan time will be tried. As an international marketer told:

‘What they do for example, is that they just give a project to us or our department without any data, just to block the time. So we have no content we can place’.

With the fact in mind that unplanned projects are always the last one on the list, e-business knows that they need to plan their projects in an earlier stage. But planning this far ahead with no content for the projects means that international marketing has no overview of what should happen at that time, since e-business simply doesn’t know yet. Within their temporal structure they don’t look that far ahead. The rule exist that all projects delivered to international marketing should be final.

Content has to be final, and no changes should be made after delivering the project. Planning time

with no content means that delivered projects are not final, and the rules are not complied. Besides

the fact that rules are ignored, e-business can not foresee the problems they will face in the process

in between the moment of planning and the moment of delivering content. So when e-business faces

holdbacks during the preparation process it can result in the fact that the planned time is not even